Market Updates

Sarasota Real Estate Sales in July 2013

By | August 22, 2013

a-housing-graph

a-housing-graphThe Sarasota Board of Realtors just released the sales statistics for July.

The Sarasota real estate market continued an amazing streak in July, with members of the Sarasota Association of Realtors® closing 911 sales during the month – a 30.3 percent increase over July 2012, and 3.2 percent higher than the June 2013 total. The first seven months of 2013 are still tracking to make the overall year one of the biggest in SAR’s history.

The other major news of the month was the major rebound in the median sale price for single family homes. The price went from $200,000 in June 2013 to $227,500 in July 2013, a 7.2 percent increase. For the 12-month rolling median price, the single family home figure was at $195,000, a 16 percent increase over last year at this time when the rolling median price was at $168,500. If current trend levels continue, this will be the biggest year-to-year increase for single family home prices in four years.

To view the full press release click here

Read more »

Property Tax Notices Have Been Sent

By | August 20, 2013

TRIM Statement

August is a wonderful time – football kicks off, the kids get back to school … and TRIM notices get sent out.  Homeowners in both Sarasota and Manatee Counties should receive their proposed tax notice today or tomorrow (give it a couple of extra days if you’re out of state) and owners invariably have questions about their statement.  Sarasota County estimates that they receive phone calls from 10% of all owners this week.

In today’s issue I’ll break down your statement so you know what’s going where.

TRIM Notices Are Not Bills!

 

TRIM Statement
See that big red box in the upper right hand corner?  That should be your first clue.  TRIM notices represent your worst-case scenario for the upcoming tax bill.  The actual tax rate (millage) is subject to change over the course of the next month or so but it can’t get any higher by statute.  That said, most locales ARE raising their taxes this year – only North Port is talking about ‘rolling back’ the tax rate.

A Note About Homestead


Most owners locally take advantage of the Save Our Homes Act, commonly referred to as ‘homestead’.  This act caps the maximum amount of tax increase at 3% of the previous year’s bill AND provides an automatic $50,000 deduction but it only applies to primary residences for which the owner has applied with the county.

The homestead resets every time title is transferred so new owners are likely to pay a little more in their second year (taxes are assessed per ownership of the property on January 1of the taxable year but aren’t payable until the end of the year, meaning most owners who bought this year are able to take advantage of the previous owner’s homestead in their first tax cycle).

Definitions

  1. Market Value – what the county thinks your home is actually worth
  2. Assessed Value – the value the county uses to actually tax you before exemptions
  3. Millage Rate – a fancy term for ‘tax rate’; calculate your taxes by multiplying (millage rate * .001 ) * (current year taxable value).
  4. Ad Valorem Taxes – taxes based on the assessed value of your property.  These are your school, city, and county taxes.
  5. Non Ad Valorem Taxes – taxes based on the size or number of units in your property, as determined by the levying authority.  These are the taxes for your fire service, garbage collection, and stormwater utility.

How To Save  A Couple Of Bucks

While the TRIM notices are just proposed taxes, the actual rates will be determined over the next month or so and your actual bill won’t be delinquent until April 1 of next year.  The local counties give discounts to taxpayers who pay early in the amount of 1% a month, startingNovember 1; if you think your taxes are too high, simply pay your taxes in November and give yourself an automatic 4% discount (or 3% in December, 2% in January, or 1% in February).

Most mortgage servicers who escrow taxes already pay early but it’s definitely worthwhile to check for yourself!

Interested In Buying or Selling?


When you hire Alex Krumm at Re/Max Alliance Group, you’ll get an award-winning expert agent ready to work for YOU!  I’m in the top 2% of active local agents for homes sold and I’m used to selling more homes for more money in less time.  Put the benefit of our area’s #1 brokerage to work and call today!

Alex Krumm, GRI, CDPE
Broker Associate, Re/Max Alliance Group
SAR Professional Development Committee
4-Year Winner, Five-Star Best In Customer Satisfaction – Sarasota Magazine
941-234-3597 Direct
srqbroker@gmail.com

Read more »

Optimistic Outlook in Housing Market

By | August 19, 2013

 WOW…here we are ALREADY more than half way through 2013. In reviewing my business plan year-to-date, I’ve noted that many of the economic and real estate predictions of Dave Liniger, Co-Founder and Chairman of RE/MAX International, such as, more buyers and sellers entering the market; home sales up; less distressed properties; mortgage rates remaining at an all time low have become reality.

For Dave’s Top Ten Real Estate Predictions CLICK HERE

That being said…If you are thinking of Buying or Selling real estate in Sarasota FL…Now is an excellent time!  Our summer months tend to be much slower than our winter ones and there’s less competition for the best homes when it’s hot outside.  If you’re thinking about buying, DON’T WAIT until 2014 – you’ll be competing with a massive influx of seasonal buyers who will scoop up the cream of the crop before you even know it’s on the market.

Read more »

Foreclosures in Sarasota

By | August 13, 2013

Foreclosure SignForeclosures:  A silver lining in the  real estate meltdown. Although the purchasing process can be a bit of a grind, in the end you may find a fantastic deal!

Buying a foreclosed home is a little different than a  typical real estate transaction.  If you think this would be of interest to you, I would recommend the first step be to contact a real estate professional specializing in foreclosed homes to educate and guide you through the process.

The Sarasota foreclosure market has several promising properties to suit your budget and lifestyle. We have beach front, downtown, luxury homes as well as “fixer uppers”.  Many of the homes are well-maintained, however some do require repairs and/or renovation.

To review several foreclosed properties currently available CLICK HERE

For a FREE list of foreclosed homes in the Sarasota marketplace email or call me.

 

Read more »

The Big Fish Have Come Out To Feed

By | July 30, 2013

Last week, the Sarasota Herald-Tribune published a fantastic article about the state of our market and the challenges today’s buyers are facing.  Much of the data in this update is drawn from this article and you can read the entire text here.

The Big Fish Have Come Out To Feed

It’s no big secret that there are a lot of cash buyers out there right now – they’ve always been prevalent in our resort market, but what’s surprising is the overall number of sales going to cash buyers right now.  The Sarasota-Bradenton area is the #4 market in the entire country overall for cash buyers with 59% of all transactions going to contracts without financing contingencies (bested only by Cape Coral [70%], Miami [64%], and Las Vegas [62%).  That’s DOUBLE the U.S. average for cash transactions and it’s making it much harder for buyers who require a mortgage to purchase.

Our summer months tend to be much slower than our winter ones and there’s less competition for the best homes when it’s hot outside.  If you’re thinking about buying, DON’T WAIT until 2014 – you’ll be competing with a massive influx of seasonal buyers who will scoop up the cream of the crop before you even know it’s on the market.

10% Of All Transactions Go To Corporate Buyers

Right now, there are at least three major hedge funds investing unheard of amounts of dollars into our market; one company alone has pledged to spend $1 billion (that’s billion with a ‘b’) between Tampa and Ft. Myers.  These buyers accounted for 10% of all last month’s sales and they purchased almost entirely in the under-$200k range.  Their contracts call for fast closings, quick inspection decisions, and are typically full-price or above cash offers.

Traditional buyers can still get into the market with an aggressive agent and a little bit of patience.  We’ll use every tool at our disposal to make sure you’re able to take advantage of today’s incredible housing opportunities.

Interest Rates Are Going Up, Up, Up

You may have heard the news about today’s record-setting interest rates.  For the past few years, interest rates have hovered in the 3.5%-4% range on 30-year fixed-rate mortgages; rates have never been lower in U.S. history.  Over the past month or so, the Fed has hinted that they’re going to back off the quantitative easing that’s been keeping rates low and rates have jumped substantially as a result.  The chart at right (courtesy bankrate.com) graphs rates over the past six months – in the last 30 days alone, interest rates have gone up almost an entire percentage point.

That rate difference really impacts your monthly payment.  On a $150,000 purchase with 20% down, it would jump your monthly payment from $726.35 (principal and interest only) to $795.52 and cost you $24,900.74 over the life of the loan.

Interested In Buying or Selling?


When you hire Alex Krumm at Re/Max Alliance Group, you’ll get an award-winning expert agent ready to work for YOU!  I’m in the top 2% of active local agents for homes sold and I’m used to selling more homes for more money in less time.  Put the benefit of our area’s #1 brokerage to work and call today!

Alex Krumm, GRI, CDPE
Broker Associate, Re/Max Alliance Group
SAR Professional Development Committee
4-Year Winner, Five-Star Best In Customer Satisfaction – Sarasota Magazine
941-234-3597 Direct
srqbroker@gmail.com

Send Me An E-Mail Today!

[contact-form to=’srqbroker@gmail.com’][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]

Read more »

Mortgage Rates On The Rise

By | July 30, 2013

Rates Up & Down

Rates Up & DownAlthough mortgage rates remain historically low, we have seen an upward surge in recent months. A 30-year fixed rate is fluctuating between low to mid 4 percent, which is the highest point we’ve seen in a couple years. In addition, greater consumer demand coupled with low inventory is resulting in increased home prices.

Visit bankrate.com to keep informed on current rates.

If you are seriously considering a home purchase, give me a call. We can discuss market trends and your real estate goals so I can assist you in the decision-making process.

 

Read more »

June Real Estate Statistics

By | July 24, 2013

Housing-InventoryThe inventory of available homes in the Sarasota market
fell to only 3,114 in June 2013 – the lowest level in longer
than a decade, and an 18 percent drop from last year at
this time. Declining inventory generally results in greater
competition for available homes and condos and subsequent
price escalation.

Members of the Sarasota Association of Realtors® sold 883
properties in June 2013, a drop from the May 2013 figure
of 1,020 which represented an eight-year high, but up 2
percent over June of last year. The Sarasota real estate market
tallied 642 single family homes and 241 condominiums
in June 2013, compared to June 2012 totals of 603 single
family homes and 261 condos sold in June 2012.

To view the full press release click here

Read more »

May Sales in Sarasota Hit New 8 Year High

By | June 25, 2013

business graph in blueMembers of the Sarasota Association of Realtors® sold 1,020 properties in May 2013, the second consecutive month that sales have hit four figures since June  2005. In many respects, April and May were statistical mirror images of each other in terms of total sales, pending sales, steadily increasing median sales prices and declining inventory. There have now been only 11 months in SAR’s 90-year history that sales have topped 1,000, with the other nine occurring in 2004 and 2005.

The spring sales surge in the Sarasota real estate market hit 737 single family homes and 283 condominiums in May 2013. That compared to 591 single family homes and 263 condos sold in May 2012. Sales were 19.4 percent above last May, when there were only 854 total sales. In April 2013, closed sales were at 1,017.

Pending sales were also up in May 2013, with 1,157 combined pendings reported. In April 2013 there were 1,097 pendings reported, and last May there were 1,075 pendings. Pending sales have now topped 1,000 every month this year. This important statistic represents properties that went under contract during the month, and indicates sales in June and beyond could also be at near record high levels.

The high sales volume was accompanied by yet another increase in the median sales prices. The figure for single family homes was $220,000 – the highest level since August 2008 and up 18.8 percent over last May’s figure of $185,000. For condos, the median was $194,250, almost 8 percent higher than last May’s figure of $180,000. The condo figure has continued to fluctuate substantially over the past few months, dropping to a low point of $130,000 in January 2013 before recovering.

Click here for the full press release from the Sarasota Association of Realtors.

Read more »

Over 1,000 Sarasota Properties Sold in April

By | May 23, 2013

Members of the Sarasota Association of Realtors® sold more than 1,000 properties in April 2013, the first time sales have hit four figures in a single month since June 2005.  There have only been ten months in SAR’s 90-year history that sales have topped 1,000, and the other nine occurred in 2004 and 2005.

business graph in blueThe spring sales surge in the Sarasota real estate market hit 714 single family homes and 303 condominiums in April 2013, for a total of 1,017 closings. That compared to 589 single family homes and 297 condos sold in April 2012, for a 14-percent increase over last year at this time. The all-time record of 1,223 sales was recorded in April 2004.

The high sales volume was augmented by an increase in the median sales prices. The figure for single family homes was $217,000 – the highest level since August 2008 and up 24 percent from last April’s figure of $175,000. For condos, the median was $185,000, slightly lower than last April’s figure of $191,000. The condo figure has continued to fluctuate substantially over the past few months, dropping to a low point of $130,000 in January 2013 before recovering.

Click here to view the full press release.

Read more »

Demand for Luxury Condominiums in Downtown Sarasota

By | May 14, 2013

If you’ve wondered whether the stories we’ve been writing lately about how the Sarasota real estate market has come roaring back to life, here’s news that will confirm the truth behind those stories.

Downtown Sarasota CondosFor the first time since the “Great Housing Bust” began in 2007 – 2008, you are about to see construction cranes again in downtown Sarasota. A furniture store and a sports bar are now being torn down to make room for the first downtown Sarasota high-rise luxury condominium tower since the onset of the real estate bust. The new condo tower will be built at Gulf Stream Avenue and Main Street joining The Queue town homes on Ringling Boulevard and the Homes of Laurel Park, a new 26-home project as the first Downtown Sarasota residential developments since 2007.

The new Jewel Residences tower will include eighteen luxury dwellings with views of Sarasota Bay. Those distinctly upscale condominium units will sit above 6 shops and restaurants. The luxury units will range from two-story lofts to a full-floor penthouse. In advance of the start of construction, seventeen of the luxury condos and five of the storefront locations have been sold according to a recent article in the Sarasota Herald Tribune. Tom Mannausa, the developer reported, “we’ve attracted a collection of active, affluent baby boomers who are very excited to move in.” This luxury property will include a fitness center, a 20-meter lap pool, jacuzzi and spa, a yoga stretch room, a six-hole putting green and a platform tennis court.

In addition to the new residential construction in Downtown Sarasota, builders are actively building homes again in Lakewood Ranch, Bradenton and other parts of Sarasota. Taylor Morrison has just opened a sales office for its “Esplanade by Siesta Key” community in the southern part of Sarasota. This new development be an active lifestyle community with resort-style amenities. When complete, it is expected to contain 247 single-family homes in Sarasota within minutes of Siesta Key beaches.

Read more »